Basel III Evolutions: Navigating the Endgame's Impact

March 08, 2024 11:00 am EST|9:00 am PST|12:00 am HKT|4:00 pm GMT

Duration: 45 Minutes

Suade hosted a webinar aimed at demonstrating that navigating through an expanding array of regulations doesn't have to be daunting. The webinar explored the obstacles financial institutions face, assessed their business costs, and presented robust solutions to effectively address these challenges.

The esteemed panelists included Anand Narayanan, Executive Director - Head of Regulatory Change Management at SMBC, along with Clare Gerhardt, Former Bloomberg and DTCC Executive, who was then CEO of Gehr Tech. The discussion was moderated by Suade's Americas Risk and Regulation Lead, Suraj Govindarajulu.

Key takeaways

The conversation centred around the implementation of Basel III regulations in the United States and the challenges banks face in meeting the compliance timelines. The discussion highlighted the need for banks to adapt to regulatory changes, particularly with the ambiguity in interpretation and the substantial internal changes required.

Regarding the impact on credit availability, concerns were raised about potential constraints on lending activities to lower-income Americans due to increased capital requirements and regulatory burdens. The conversation delved into how these regulations might affect credit availability for marginalised communities and the potential risks associated with a shift towards non-banking financial institutions.

The conversation also touched upon the implementation challenges banks face with limited resources, particularly in transitioning from internal to standardised models and the need for clear analysis and infrastructure evaluation to optimise resource allocation.

Building an external framework can be costly but long-term, poorly built internal models will prove more expensive to maintain. Building once and building it right, allows banks to adapt correctly.

-Clare Gerhardt, Former Bloomberg and DTCC Executive

Furthermore, the role of second line of defence (LOD) functions in providing oversight and identifying key risks was discussed, highlighting the complexities involved in risk management and the importance of learning from past crises to improve risk mitigation strategies.

Additionally, the potential impact of emerging technological trends such as generative AI and regtech on the regulatory space was explored, emphasising the opportunities for enhancing regulatory change management and risk assessment through automation and data analysis.

Overall, the discussion provided insights into the complexities and implications of Basel III Endgame implementation in the US banking sector, highlighting the importance of balancing regulatory requirements with maintaining access to credit and the need to adopt new regulatory technology to strengthen reporting frameworks.

Watch the full video here:

If you are currently working on improving your regulatory reporting processes or would like to learn more about how Suade is automating regulation for global financial institutions, then please get in touch to arrange a demo.